FX.co ★ DAX Edges Higher On Fed, ECB Rate Cut Hopes

German stocks exhibited a modest rise on Monday. The slight increase was spurred by a below-par April U.S. jobs report that was released on Friday. In addition to this, data highlighted an unforeseen shrink in the U.S. service sector activity during April, strengthening arguments for rate reductions by the third quarter.

Locally, media outlets cited the European Central Bank Chief Economist, Philip Lane, stating that inflation is gradually returning to the target. Therefore, this supports a compelling case for a June rate cut. Lane, along with the President Christine Lagarde and Vice President Luis de Guindos, is one of the six members of the governing executive board for the European Central Bank.

The benchmark DAX climbed up by 49 points, marking a 0.3 percent increase, to reach 18,050 after witnessing a 0.6 percent surge on Friday.